Unit
– V
Industrial
relations – Trade unionism – Grievance handling – Collective bargaining and
workers participation in Management.
Industrial relations
Definition of Industrial Relations
Industrial
relation is defined as relation of Individual or group of employee and employer
for engaging themselves in a way to maximize the productive activities.
In the words of
Lester, “Industrial relations involve attempts at arriving at solutions between
the conflicting objectives and values; between the profit motive and social
gain; between discipline and freedom, between authority and industrial
democracy; between bargaining and co-operation; and between conflicting
interests of the individual, the group and the community.
Concept of Industrial Relations
The term
‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’.
“Industry” refers to “any productive activity in which an individual (or a
group of individuals) is (are) engaged”. By “relations” we mean “the
relationships that exist within the industry between the employer and his
workmen.” The term industrial relations explains the relationship between
employees and management which stems directly or indirectly from union-employer
relationship.
Need for Industrial Relation
Need
of Industrial Relation has arisen to defend the interest of workers for
adjusting the reasonable salary or wages. It also helps the workers to seek
perfect working condition for producing maximum output. Workers/employees are
concerned with social security measures through this. Industrial Relations is
also needed for achieving the democracy by allowing worker to take part in
management, which helps to protect human rights of individual.
In
fact, industrial relation encompasses all such factors that influence behaviour
of people at work. A few such important factors are below:
Characters
It
aims to study the role of workers unions and employers€™ federations officials,
shop stewards, industrial relations officers/ manager, mediator/conciliators /
arbitrator, judges of labor court, tribunal etc.
Institution
It
includes government, employers, trade unions, union federations or
associations, government bodies, labor courts, tribunals and other
organizations which have direct or indirect impact on the industrial relations
systems.
Methods
Methods
focus on collective bargaining, workers participation in the industrial
relations schemes, discipline procedure, grievance redressal machinery, dispute
settlements machinery working of closed shops, union reorganization,
organizations of protests through methods like revisions of existing rules,
regulations, policies, procedures, hearing of labor courts, tribunals etc.
Contents
It
includes matter pertaining to employment conditions like pay, hours of works,
leave with wages, health, and safety disciplinary actions, lay-off, dismissals
retirements etc., laws relating to such activities, regulations governing labor
welfare, social security, industrial relations, issues concerning with workers
participation in management, collective bargaining, etc.
Scope of IR:
Based on above definitions of
IR, the scope of IR can easily been delineated as follows:
1. Labour relations, i.e., relations between
labour union and management.
2. Employer-employee relations i.e. relations
between management and employees.
3. The role of various parties’ viz.,
employers, employees, and state in maintaining industrial relations.
4. The mechanism of handling conflicts between
employers and employees, in case conflicts arise.
The main aspects of industrial
relations can be identified as follows:
1. Promotion and development of healthy labour
— management relations.
2. Maintenance of industrial peace and
avoidance of industrial strife.
3. Development and growth of industrial
democracy.
Objectives of IR:
The primary objective of industrial relations
is to maintain and develop good and healthy relations between employees and
employers or operatives and management. The same is sub- divided into other
objectives.
Thus, the objectives of IR are
designed to:
1. Establish and foster sound relationship
between workers and management by safeguarding their interests.
2. Avoid industrial conflicts and strikes by
developing mutuality among the interests of concerned parties.
3. Keep, as far as possible, strikes, lockouts
and gheraos at bay by enhancing the economic status of workers.
4. Provide an opportunity to the workers to
participate in management and decision making process.
5. Raise productivity in the organisation to
curb the employee turnover and absenteeism.
6. Avoid unnecessary interference of the
government, as far as possible and practicable, in the matters of relationship
between workers and management.
7. Establish and nurse industrial democracy
based on labour partnership in the sharing of profits and of managerial
decisions.
8. Socialise industrial activity by involving
the government participation as an employer.
Trade
Unionism
According to Indian Trade Union Act of 1926 defines a trade
union as any combination whether temporary or permanent formed primarily for
the purpose of regulating the relations between workmen and employer or between
workmen and workmen, between employers and employers or for imposing
restrictive conditions on the conduct of any trade or business and include any
federation of two or more trade unions.
Principles of Trade Unionism
Trade
unions functions on the basis of three fundamental Principles. These are:
1. Unity is strength.
2. Equal pay for equal work or for the
same job.
3. Security of service.
Functions of Trade Unionism
Some of the most important functions of the trade union are as follows:
i. Increasing Co-operation and
Well-being among Workers:
The
modern industry is complex and demands specialization in jobs. This results in
extreme division of labor, which leads to the growth of individualism and
development of impersonal and formal relationships. There is no common
unifying bond among the workers.
It is in
this context that the trade unions come into the picture and they promote
friendliness and unity among the workers. Besides this, the trade unions also
discuss the problems, which are common to all the workers. It is a platform
where workers come together and know each other. The trade unions also provide
some kind of entertainment and relaxation to the workers.
ii. Securing Facilities for
Workers:
Most of
the industrialists are not very keen on providing the facilities and proper
working conditions to the workers. They are more interested in getting their
work done to the maximum extent. In such conditions, trade unions fight on behalf
of the workers and see that the facilities have been provided by the
management.
iii. Establishing Contacts
between the Workers and the Employers:
In
present days, there are many industries, which have grown into giants. A single
unit in a particular industry may employ hundreds of employees. Many times a
worker or employee may not have a chance to see their managers. In this
situation, the workers are not able to express their grievances before their
employers, and even the management does not know the difficulties faced by the
workers.
The trade
unions play an important role in bringing to the notice of the employers the
difficulties and grievances of the employees. They try to arrange face-to-face
meetings and thus try to establish contacts between the employees and the
employers.
iv. Trade Unions working for the
Progress of the Employees:
The trade
unions try to improve the economic conditions of the workers by representing
their cases to the employers and try to get adequate bonus to the workers.
v. Safeguarding the Interests of
the Workers:
Most of
the industries try to exploit the workers to the maximum. They do not provide
any benefits such as increasing their wages, granting sick leaves, giving
compensation in case of accidents, etc. The workers are not made permanent even
after many years of service and in some cases they are removed from service
summarily. The trade unions provide security to the employees in such
situations.
vi. Provision of Labor Welfare:
The
economic conditions of the industrial workers in India are very poor. The
standard of living is very low. A majority of industrial workers in India are
illiterate or semi-literate. It is the responsibility of the trade unions to
get them proper housing facilities and promote the socio-economic welfare of
the laborers. The trade unions also try to arrange educational facilities for
the children of the workers.
Grievance Handling
Introduction and Definition of
Grievance:
A
grievance is any dissatisfaction or feeling of injustice having connection with
one’s employment situation which is brought to the attention of management.
Speaking broadly, a grievance is any dissatisfaction that adversely affects
organizational relations and productivity. To understand what a grievance is,
it is necessary to distinguish between dissatisfaction, complaint, and
grievance.
1.
Dissatisfaction is anything that disturbs an employee, whether or not the
unrest is expressed in words.
2.
Complaint is a spoken or written dissatisfaction brought to the attention of
the supervisor or the shop steward.
3.
Grievance is a complaint that has been formally presented to a management
representative or to a union official.
According to Michael Jucious, ‘grievance is any discontent or dissatisfaction whether
expressed or not, whether valid or not, arising out of anything connected with
the company which an employee thinks, believes or even feels to be unfair,
unjust or inequitable’.
In short,
grievance is a state of dissatisfaction, expressed or unexpressed, written or
unwritten, justified or unjustified, having connection with employment
situation.
Features of Grievance:
1. A
grievance refers to any form of discontent or dissatisfaction with any aspect
of the organization.
2. The
dissatisfaction must arise out of employment and not due to personal or family
problems.
3. The
discontent can arise out of real or imaginary reasons. When employees feel that
injustice has been done to them, they have a grievance. The reason for such a
feeling may be valid or invalid, legitimate or irrational, justifiable or
ridiculous.
4. The
discontent may be voiced or unvoiced, but it must find expression in some form.
However, discontent per se is not a grievance. Initially, the employee may
complain orally or in writing. If this is not looked into promptly, the
employee feels a sense of lack of justice. Now, the discontent grows and takes
the shape of a grievance.
5.
Broadly speaking, thus, a grievance is traceable to be perceived as
non-fulfillment of one’s expectations from the organization.
Causes of Grievances:
Grievances may occur due to a number of reasons:
1. Economic:
Employees
may demand for individual wage adjustments. They may feel that they are paid
less when compared to others. For example, late bonus, payments, adjustments to
overtime pay, perceived inequalities in treatment, claims for equal pay, and
appeals against performance- related pay awards.
2. Work environment:
It may be
undesirable or unsatisfactory conditions of work. For example, light, space,
heat, or poor physical conditions of workplace, defective tools and equipment,
poor quality of material, unfair rules, and lack of recognition.
3. Supervision:
It may be
objections to the general methods of supervision related to the attitudes of
the supervisor towards the employee such as perceived notions of bias,
favouritism, nepotism, caste affiliations and regional feelings.
4. Organizational change:
Any
change in the organizational policies can result in grievances. For example,
the implementation of revised company policies or new working practices.
5.
Employee relations:
Employees
are unable to adjust with their colleagues, suffer from feelings of neglect and
victimization and become an object of ridicule and humiliation, or other inter-
employee disputes.
6. Miscellaneous:
These may
be issues relating to certain violations in respect of promotions, safety
methods, transfer, disciplinary rules, fines, granting leaves, medical
facilities, etc.
Collective
Bargaining
The ILO defines Collective Bargaining as negotiations between
an employer, a group of employers or one or more organizations of employers on
one hand, one or more representatives/organisations of workers on the other,
with a view to reaching an agreement over working conditions and terms of
employment.
Michael J. Jucious has defined collective bargaining as “a
process by which employers, on the one hand, and representatives of employees,
on the other, attempt to arrive at agreements covering the conditions under
which employees will contribute and be compensated for their services”.
Characteristics of Collective Bargaining
1.
It is essentially a
group activity rather than an individual or unilateral action.
2. Flexible attitude of both the
management and the union is encouraged.
3. It is a bilateral process.
4. It is an ongoing and dynamic process.
5. It is complex in nature because of
the process and techniques adapted in resolving the issue.
6. It performs legislative, judicial and
executive functions.
7. It is both an art and science.
Objectives of Collective Bargaining
1. To foster
and maintain cordial and harmonious relations between the employer/management
and the employees.
2. To protect
the interests of both the employer and the employees.
3. To keep the
outside, i.e., the government interventions at bay.
4. To promote
industrial democracy.
Importance:
The need for and importance of collective
bargaining is felt due to the advantages it offers to an organisation.
The chief ones are as follows:
1. Collective bargaining develops
better understanding between the employer and the employees:
It provides a platform to the management and
the employees to be at par on negotiation table. As such, while the management
gains a better and deep insight into the problems and the aspirations of die
employees, on the one hand, die employees do also become better informed about
the organisational problems and limitations, on the other. This, in turn,
develops better understanding between the two parties.
2. It promotes industrial
democracy:
Both the employer and the employees who best know
their problems, participate in the negotiation process. Such participation
breeds the democratic process in the organisation.
3. It benefits the both-employer
and employees:
The negotiation arrived at is acceptable to
both parties—the employer and the employees.
4. It is adjustable to the
changing conditions:
A dynamic environment leads to changes in
employment conditions. This requires changes in organisational processes to
match with the changed conditions. Among other alternatives available, collective
bargaining is found as a better approach to bring changes more amicably.
5. It facilitates the speedy
implementation of decisions arrived at collective negotiation:
The direct participation of both parties—the
employer and the employees—in collective decision making process provides an
in-built mechanism for speedy implementation of decisions arrived at collective
bargaining.
Process
of Collective Bargaining
The collective bargaining process comprises of five core steps:
1.
Prepare: This phase involves
composition of a negotiation team. The negotiation team should consist of
representatives of both the parties with adequate knowledge and skills for
negotiation. In this phase both the employer’s representatives and the union
examine their own situation in order to develop the issues that they believe
will be most important. The first thing to be done is to determine whether
there is actually any reason to negotiate at all. A correct understanding of
the main issues to be covered and intimate knowledge of operations, working
conditions, production norms and other relevant conditions is required.
2. Discuss:
Here, the parties decide the ground rules that will guide the negotiations.
A process well begun is half done and this is no less true in case of
collective bargaining. An environment of mutual trust and understanding is also
created so that the collective bargaining agreement would be reached.
3. Propose:
This phase involves the initial opening statements and the possible options that
exist to resolve them. In a word, this phase could be described as
‘brainstorming’. The exchange of messages takes place and opinion of both the
parties is sought.
4. Bargain:
negotiations are easy if a problem solving attitude is adopted. This stage comprises
the time when ‘what ifs’ and ‘supposes’ are set forth and the drafting of
agreements take place.
5. Settlement:
Once the parties are through with the bargaining process, a consensual
agreement is reached upon wherein both the parties agree to a common decision
regarding the problem or the issue. This stage is described as consisting of
effective joint implementation of the agreement through shared visions,
strategic planning and negotiated change.
Workers Participation in Management
Definition
According to Keith Davis, “Workers’
participation refers to the mental and emotional involvement of a person in a
group situation which encourages him to contribute to group goals and share in
responsibility of achieving them”.
In the words of Mehtras “Applied to
industry, the concept of participation means sharing the decision-making power
by the rank and file of an industrial organisation through their representatives,
at all the appropriate levels of management in the entire range of managerial
action”.
Characteristics:
The following are the main
characteristics of WPM:
1. Participation implies practices which increase the scope
for employees’ share of influence in decision-making process with the
assumption of responsibility.
2. Participation presupposes willing acceptance of
responsibility by workers.
3. Workers participate in management not as individuals but
as a group through their representatives.
4. Worker’s participation in management differs from
collective bargaining in the sense that while the former is based on mutual
trust, information sharing and mutual problem solving; the latter is
essentially based on power play, pressure tactics, and negotiations.
5. The basic rationale tor worker’s participation in
management is that workers invest their Iabour and their fates to their place
of work. Thus, they contribute to the outcomes of organization. Hence, they
have a legitimate right to share in decision-making activities of organisation.
Objectives of WPM
1. Increase in productivity for the
benefit of all concerned to an enterprise, i.e., the employer, the employees
and the community at large.
2. Satisfaction of worker’s urge for
self-expression in the matters of enterprise management.
3 Making employees better understood
of their roles in the organisation.
In ultimate sense, the objective of
WPM in India is to achieve organizational effectiveness and the satisfaction of
the employees.
Levels of Participation:
We are therefore highlighting here
these levels briefly ranking them from the minimum to the maximum level of
participation.
Informative Participation:
This refers to management’s
information sharing with workers on such items those are concerned with
workers. Balance Sheet, production, economic conditions of the plant etc., are
the examples of such items. It is important to note that here workers have no
right of close scrutiny of the information provided and management has its
prerogative to make decisions on issues concerned with workers.
Consultative Participation:
In this type of participation,
workers are consulted in those matters which relate to them. Here, the role of
workers is restricted to give their views only. However the acceptance and
non-acceptance of these views depends on management. Nonetheless, it provides
an opportunity to the workers to express their views on matters involving their
interest.
Associative Participation:
Here, the role of the workers’
council is not just advisory unlike consultative participation. In a way, this
is an advanced and improved form of consultative participation. Now, the
management is under a moral obligation to acknowledge, accept and implement the
unanimous decision of the council.
Administrative Participation:
In the administrative participation,
decisions already taken are implemented by the workers. Compared to the former
three levels of participation, the degree of sharing authority and
responsibility by the workers is definitely more in this participation.
Decisive Participation:
Here, the decisions are taken jointly
by the management and the workers of an organisation. In fact, this is the
ultimate level of workers’ participation in management.
